Specialty pharmaceutical company Mallinckrodt plc entered into a definitive agreement to acquire Cadence Pharmaceuticals for $1.3 billion. The debt-financed acquisition will result in leverage that meaningfully exceeds our expectations, increasing to more than 5x, from about 2.3x at Sept. 30, 2013. We are placing all of our ratings on Mallinckrodt, including our 'BBB-' corporate credit rating, on CreditWatch with negative implications. We will resolve the CreditWatch placement when details about permanent financing and management's financial policy become more evident. BOSTON (Standard&Poor's) Feb. 11, 2014--Standard&Poor's Ratings Services today placed all of its ratings on Hazelwood, Mo.-based Mallinckrodt plc on CreditWatch with negative implications. The CreditWatch placement follows the company's announcement that it entered into a definitive agreement
